How to allocate position size with weight allocation of portfolio using beta
Next up is the most useful you will see for this system.
Calculations below include portfolio size, margin %, with $ amount, theme size with margin % and $.
1. Iterating through each open positions, calculate beta, determine weight allocation of all deployed capital in open positions (both for long and short) and long/short percentage.
2. Use long/short weight percentage and also calculate percent of total long long/short percent weight. Do the same for the shorts.
3. You should be able to calculate each position % and $ allocation.
4. Of course, there is the current position where you will be able to calculate number of shares to purchases with total. You should be able to calculate the porfolio % allocated.FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!